SCHMOLZ + BICKENBACHQ3 2017 Results – Investors & Analysts Conference CallLucerne, November 9, 2017

Disclaimer

Forward-looking statements

This presentation contains forward-looking statements about developments, plans, intentions, assumptions, expectations, convictions, possible impacts or the description of future events, outlooks, revenues, results or situations, for example. These are based upon the company's current expectations, convictions and assumptions, but could materially differ from any future results, performance or achievements. We are providing this communication as of the date hereof and do not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.

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Content

01 Business Review Q3 2017

02 Financial Performance Q3 2017

03 Outlook 2017

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01 Business Review Q3 2017

Continued Positive Momentum

▶ Normal Seasonality in Q3 – Momentum Resumed After Summer Break Market conditions similar to the first six months

No signs of weakness in our end markets

Prudent order intake

Results below first / second quarter due to usual slowdown in business activity

Sales volume impacted by product portfolio restructuring and shortage in transportation capacity

▶ Profitability Supported By Higher Sales Prices Average sales price rose by 10.5% driven by robust demand and better raw material prices Sales volume increased by 3.6% – revenue with double-digit growth rate versus Q3 2016 Adj. EBITDA rose to EUR 38.0 million from EUR 31.8 million in Q3 2016 (+19.5%)

▶ Further Structural Improvements Production Steeltec in Sweden closed, agreed social plan at Steeltec Germany Sales & Services in Chile and JV in China operational New business model for Sales & Services in Germany operational Performance improvement measures on track

5

Market Environment with Further Positive Development

▶ Strong Demand in Europe European automotive industry in upswing Mechanical & plant engineering robust Oil & Gas industry with strong growth y-o-y

but limited impulses

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Baker Hughes North American Oil & Gas Rotary Rig Counts (quarterly average)

763595

470728

933

Q3 15 Q2 17

1,003

Q3 17

1,1531,029

Q3 16 Q1 17

1,055

Q1 16Q4 15 Q2 16 Q4 16

New Passenger Car Registrations EU (in million)

Mechanical Engineering Productionin Germany (Index, 2010 = 100%)

Sources: ACEA (European Automobile Manufacturers Association) Sources: Bloomberg, German Federal Statistics Office (Sep 17)

9M 17

11.7

9M 16

11.2

+ 3.7%

08/17

119

08/16

116

+ 2.8%

Raw Materials Volatile, Sales Volume and Prices in Uptrend

▶ Raw Material Prices Volatile Positive momentum ongoing High volatility, especially for nickel

▶ Sales Volume and Prices Up Volume improved vs. Q3 16 Seasonally lower vs. Q2 17 –

maintenance / repair period Unfavorable impact from:

• Limited transportation capacity (6 kt)• Product portfolio restructuring (Steeltec, 10 kt)

Average sales price +10.5% y-o-y

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311254259244

214260

188179217

Q3 17Q4 16Q3 16 Q1 17Q2 16Q1 16Q4 15Q3 15 Q2 17

Steel Scrap Rotterdam fob(quarterly average, USD/t)

Sales Volume(kilotons)

470

405391

Q3 2016 Q3 2017Q2 2017 Q3 2017

1,366

Q2 2017

1,5091,489

Q3 2016

Average Sales Price(EUR /t)

Change (in USD/t) vs Q3 16 vs Q2 17

Scrap +45% +23%

Nickel +3% +14%

High Carbon Ferrochrome +45% –7%

Sales Volume Strong in Stainless and Quality & Engineering, Order Backlog Normalizing Along With Selective Order Intake

▶ Quality & Engineering Steel, Stainless Steel Increased Strength in European automotive industry

Quality & Engineering with stronger increase in Q3 – equipment ramp up issues in Q3 16

▶ Weakness In Tool Steel Sales Healthy price development

Differentiated demand by product category

▶ Order Backlog Seasonally Lowervs. End Q1/Q2 Backlog at favorable level to achieve efficient

production

More restrictive order intake to ensure gooddelivery performance

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Sales Volume by Product Group (kt)

4179

267

39

284

81

ToolStainlessQuality & Engineering

+ 6.4%

+ 1.9%

Q3 16 Q3 17

– 4.9%

547600620

462420

395

497452

405

470489

YE 2013

end Q3 17

end Q2 17

YE 2015

end Q1 17

YE 2014

YE 2016

end Q3 16

Order Backlog (kt) / Sales Volume (kt)

02 Financial Performance Q3 2017

Seasonality Mirrored in Production and Sales Volume

▶ Production & Sales Volume up y-o-y Crude steel production increased by 2.3%

compared to Q3 16

Production lower than in Q2 17 due toseasonal maintenance works during summerholiday period

Sales volume +3.6% y-o-y despite 16 ktimpact in Q3 17 through product portfoliorestructuring and transport capacitylimitations

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Crude Steel Production (kt)

Sales Volume (kt)

408

535527448

399495474463

397

Q3 17Q3 15 Q4 15 Q1 16 Q1 17 Q2 17Q4 16Q3 16Q2 16

405470489

401391471461

401410

Q3 17Q2 17Q3 15 Q4 15 Q1 16 Q2 16 Q3 16 Q4 16 Q1 17

Revenue Growth Driven by Prices

▶ Revenue Growth of 14.4% y-o-y

▶ Improved Sales Prices – Back to Level of Q3 15 Quarterly sales price further increased

in Q3 17 compared to Q3 16

Prices up for 6th quarter in a row

Higher base prices and raw material prices

Q3 impacted by unit / product mix

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1,3661,314

Q3 15

1,309

Q4 15

1,426

Q1 16

1,513

Q2 17Q2 16

1,489

Q3 16

1,447

Q4 16

1,392

Q1 17 Q3 17

1,509

Average Sales Price (EUR/t)

Revenue (EUR million)

611

700708

558534

619604571

620

Q1 16 Q2 16Q3 15 Q4 15 Q1 17Q4 16Q3 16 Q3 17Q2 17

EBITDA Growth Supported by Continuing Performance Improvement Measures

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Adj. EBITDA Q3 17 vs Q2 17 (EUR million)

▶ EBITDA and EBITDA Margin Improvedy-o-y, yet Significantly Impacted bySeasonality versus Q2 2017

Higher sales prices vs previous years’ periods

Weaker vs Q1, Q2 – lower volumes andhigher share of Quality & Engineering steel

EUR 5 million sustainable cost savingsachieved in Q3; 9M total at EUR 23 million

37.8

22.49.938.5

5.8

69.6

VolumeQ2 17 One-off items (Pension valuation, Brampton

warehouse sale)

Q3 17otherMix/Margin

38.0

69.666.6

43.931.8

52.5

25.040.6

11.6

9.99.4

7.96.0

8.57.1

Q3 17

6.2

Q2 17Q1 17Q4 16Q2 16Q1 16 Q3 16Q3 15

1.9

Q4 15

4.1

Adj. EBITDA / margin (EUR million / %)

Adj. EBITDAMargin

Restructuring Progressing

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▶ New Sales Organization at DEW andConsolidation in Germany FullyOperational

▶ Restructuring of Steeltec on Track andWell-Advanced Installation of equipment transferred from

Boxholm to Düsseldorf largely completed

Property in DK sold, cash-in Q4 (EUR 5.6 mn)

▶ Productivity Improvement Proceeding Headcount shift away from structurally

challenged BUs: – 181 reduced in Germany+ 118 at production sites in France and N. America+ 35 new entities (JV China, Service Center Chile)

Further reduction of 70 positions untilyear-end 2017

Headcount Development

181

35

11815

8,969

OthersHigher production

New entities

RestructuringQ3 16

8,982

Q3 17

Provisions for Restructuring & Reorganization 1)

21

14

5

14

Restructuring and Other Personnel-related Measures

Reorganization DEW

realizedprovisioned

1) See presentation FY 2016 results p14

Improvement of Capital Structure on Track

▶ Positive Free Cash Flow FCF at EUR 27.0 mn (Q3 16: EUR 56.8 mn)

Net Working Capital seasonally down by EUR 36 mn, ratio up by 2.4%-points

Capex YTD at EUR 53 mn

Capex FY 2017e at approx. EUR 105 mn

Cash-neutral: investments in Texas and China more than offset by cash-in from disposals in Canada and Denmark

▶ Further Improvement of Financial Leverage Net debt decreased compared to Q2 17

Leverage (net debt / adj. EBITDA) fell to a record low of 2.1x

NWC / NWC/Revenue last 3M (EUR million / %)

716753709615647689704691

844

26.9

25.127.630.3

Q3 15

27.8

Q1 17

29.2

Q2 17

30.234.0

Q2 16 Q3 16 Q4 16Q1 16Q4 15 Q3 17

29.3

Net Debt / ND/adj. EBITDA (EUR million / ratio)

455472470420421454489471

544

2.2

2.42.72.83.53.5

2.82.82.1

Q4 15 Q2 17Q1 16 Q3 16Q2 16 Q4 16 Q1 17Q3 15 Q3 17

NWC/Revenue NWC

Net debt Net debt/adj. EBITDA

NWC as at the reporting date as a percentage of annualized quarterly revenue

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03 Outlook 2017

Outlook For Full-Year 2017 Confirmed

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▶ Current Business Conditions Support Further Growth Synchronized global economic upswing is largely intact, no signs of weakness in customer industries

Still strong order backlog after first nine months Internal improvement / restructuring measures almost completed Political and macroeconomic risks remain high Raw material price volatility to remain high

▶ Significant Risks From Cost Inflation Rising costs for graphite electrodes and refractories

Outlook for Full-Year 2017

SCHMOLZ + BICKENBACH expects an adjusted EBITDA in a range between EUR 200 million and EUR 220 million

Q & A Session

Appendix

Nickel Price Development – 1 Year

8000

8500

9000

9500

10000

10500

11000

11500

12000

12500

Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17

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Source: Bloomberg, LME Nickel USD/mt

Nickel Price Development – 10 Years

0

10000

20000

30000

40000

50000

60000

Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

20

Source: Bloomberg, LME Nickel USD/mt

Financial Calendar and Contact

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Date Event

March 8, 2018 Annual Report 2017, Media and Investor Conference, Zurich

April 26, 2018 Annual General Meeting, KKL, Lucerne

May 8, 2018 Interim Report Q1 2018, Media and Investor Conference Call

August 8, 2018 Interim Report Q2 2018, Media and Investor Conference Call

November 8, 2018 Interim Report Q3 2018, Media and Investor Conference Call

Contact

Dr Ulrich SteinerVice President Corporate Communications & Investor RelationsPhone +41 41 581 4120u.steiner@schmolz-bickenbach.com